Two Sigma Advisors 5 Top Stock Picks and their Performance against S&P 500 ETF (SPY)

2. NVIDIA Corporation (NASDAQ:NVDA)

Two Sigma Advisors Equity Stake: $723.49 Million

Year-to-date Performance: +220%

SPDR S&P 500 ETF Trust (NYSEARCA:SPY) YTD Performance: +15.59%

Number of Hedge Fund Holders: 175

Nvidia Corporation (NASDAQ:NVDA) is a technology company that provides graphics, computing, and networking solutions. The company designs and manufactures graphics processing units for gaming and PCs. The company’s compute and networking segment offers data center platforms and systems for artificial intelligence.

Nvidia Corporation (NASDAQ:NVDA) is one of the stocks that have helped shrug off Two Sigma founder’s squabbles going by its impressive run year to date. The stock gained 93% in Q1 compared to a 6% gain in the S&P 500 ETF (SPY). The stock was also up by 52% in Q2 compared to a 9.9% gain for the ETF and a 2.6% gain in Q3 compared to a loss of 3.6% for the ETF. While Two Sigma Advisors has been buying and selling shares in Nvidia Corporation (NASDAQ:NVDA) since 2010, it started bolstering its position in the second quarter of 2023 as it benefits from the AI boom. It is the second largest holding, accounting for 1.84% of the portfolio.

Here is what Baron Opportunity Fund said about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2023 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) is a leading semiconductor company that sells chips and software for accelerated computing and gaming. Shares have nearly tripled year-to-date, as the company continues reporting unprecedented growth because of the acceleration in demand for its data center chips. After reporting revenue of $7 billion in the first quarter and providing guidance of $11 billion for the second quarter, NVIDIA reported second quarter revenue of $13.5 billion and guided for another step up in the third quarter to $16 billion, with its CFO declaring “[d]emand for our Data Center platform for AI is tremendous and broad-based across industries and customers.” We are at the tipping point of a new era of computing with NVIDIA at its epicenter. This is how CEO and founder Jensen Huang put it (during the company’s August 23 earnings call):

“[T]he easiest way to think about the demand is the world is transitioning from general purpose computing to accelerated computing…[W]hat you’re seeing companies do now is recognizing this…tipping point…recognizing the beginning of this transition, and diverting their capital investment to accelerated computing and generative AI…This isn’t a singular application that is driving the demand, but this is a new computing platform…a new computing transitioning that’s happening…A new computing era has begun. The simultaneously going through two platform transitions, accelerated computing and generative AI.””

[/company-follow-email